Total production cost- #360,000 Factory overhead cost- #56,000 Selling price per unit- # 120 Production volume 4000 units What is the total manufacturing profit?

Total production cost- #360,000

Factory overhead cost- #56,000

Selling price per unit- # 120

Production volume 4000 units

What is the total manufacturing profit?

A #64,000
B #120,000
C #360,000
D #480,000

jamb 2012 accounting

The correct answer is B. #120,000

selling price x production volume

120 x 4000 = 480,000

Total sales - cost of production

480,000 - 360,000 = 120,000 (profit)

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